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Evgenii, Roelof & Sjoerd
Content
Mission
&
Vision
Comparative Company Profile
PEST analysis

• E-commerce
safety
• Internet
Taxation
• Government
Investments in
ICT
• Books Content
Regulations

• Negative
economic
downturn
• Economic
Growth in
China & India
• Currency
Fluctuations

• Online & Social
Networking
• Ethical & Religious
Issues
• Social
Magnification and
Centralization
• Declining Number
of Visitors

• Three
Dimensional
Books Tech
• Virtual Libraries
Boom
• E-book wars
• Book search
robotics
Porter’s Five Forces Analysis
HIGH

SUBSTITUTE
PRODUCTS

MODERATE

POTENTIAL
ENTRANTS

MODERATE

HIGH

BUYERS

HIGH

MODERATE

SUPPLIERS

HIGH

HIGH

INDUSTRY
RIVALRY

HIGH
Market Life Cycle
Value Chain
Value Chain
Current Corporate Strategy
Marketing Strategy
CM
a o
n d
v e
a l
s

Reed
Elsevier
Thompson
Reuters
McGrawHill
Education

Retail
Promotion
Developing

Paper
books

Personal in
store
service

eBooks

All book
lovers

eReaders
Stores
Brand

Stores
Webshop

Music
Movies
Games

Rent, HR, logistics Digital technology
Webshop
Promotion

Sales

(Advertising)
SWOT
Confrontation Matrix
Growth

Compe

Acquisi

Aging

Global

Retail

Books

Stores

++

+

o

++

o

--

--

Service

++

++

o

++

o

+

+

Integra

++

++

+

o

o

++

o

Experie

++

o

+

o

++

+

Scale

++

o

+

+

++

Fixed

--

o

+

o

+

Inflexi

--

+

+

+

+

Prices

--

+

o

o

--

Losses

--

o

--

o

-

Investo

--

o

--

o

-

Tablet

Crisis

Online
Core Problem
Amazon

Strategic Choice

Barnes & Nobles
FAS Amazon
FAS

A Market Pen.

B Product Dev.

C Market Dev.

D Service Dev.

Feasibility

✔Skills Present

✔VC

✔Pest

✔VC

Acceptability

✔Shareholder
Value

✔High Cost

✔SWOT

✔higher costs

Suitability

✔PEST

✔Competition

✔risky though

✔Pest

A. Penetrate China
B. Product Development: Include contact lenses and
eyewear into the product range
C. Market Development: Conquer India
D. Greener packaging and delivery
FAS B&N
FAS

Do Nothing

A Market Pen.

B Market Dev.

Feasibility

✗Declining
Market

✔VC

✔Pest

Acceptability

✗Decreased
value

✔High Cost

✔SWOT

Suitability

✗PEST

✔Competition

✔Competition

A. Market Penetration: China & India
B. Further develop its online market, BN.com
International strategy
Amazon
Amazon
Barns &
Barns &
Noble
Noble

HIGH
HIGH
Coordination of
Coordination of
Activities
Activities
LOW
LOW

Geographically
Geographically
Dispersed
Dispersed

Configuration of
Configuration of
Activities
Activities

Geographically
Geographically
Concentrated
Concentrated
Strategic Recommendations
Decrease price of Nook
Keep stores as USP, find new sources of income
Penetrate Chinese, Indian markets
Continue developing online webshop, make it global
Keep focus on books
CM
a o
n d
v e
a l
s

Reed
Elsevier
Thompson
Reuters
McGrawHill
Education

Retail
Promotion
Developing

Paper
books

Personal in
store service

eBooks
eReaders

Stores
Brand

Stores
Webshop

Music
Movies
Games

Rent, HR, logistics Digital technology
Webshop
Promotion

Sales

All book
lovers in
the US

(Advertising)
CM
a o
n d
v e
a l
S
+5

Chinese
publishers
Indian
publishers

Opening up
new markets

Paper
books

Personal in
store service

eBooks
eReaders
Chinese &
Indian stores
Brand

Music
Movies
Games

Rent, HR, logistics Digital technology
Webshop
Promotion

Chinese &
Indian stores
Webshop

Sales
Lottery tickets

All book
lovers in
the US,
China and
India.

Advertising
Bookclubs

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Barnes & Noble vs. Amazon.com - Comparative Strategy Analysis